Reply 2 for week 2

Running head: WEEK 2 REFLECTION AND DISCUSSION 1

Week 2 Reflection and Discussion

Ivana Kazic

Dr. Larry Parker

BADM 624 Competitive Strategy

University of the Cumberlands

May 14, 2020

After reading this week’s material the term that I found to be the worthiest of my understanding and useful in my future work is competitive intelligence. Competitive intelligence refers to the company’s efforts to collect and interpret the data they can find on competitors, which then they will use to identify their strengths and weaknesses, but also the efforts to understand the industry that they are in (Dess, McNamara, Eisner, & Lee, 2021). The reason I found this particular item to be very important is because I believe that in order to beat the competition, you need to understand the competition and their strategy. Furthermore, knowing the strengths and weaknesses of the competitors simultaneously creates opportunities for the company itself (Dess, McNamara, Eisner, & Lee, 2021). Understanding the segments that the competition is doing poorly gives us an opportunity to see it from a perspective of an outsider and act on it to improve our company’s performance. On the other hand, it is always useful to see the things that the competition is doing right and is profiting from, as we can use it to strategize and possibly create a plan that will ensure beating the competition and staying ahead.

As I imagine myself as the CEO of Netflix, which is a part of the huge TV industry, the major trend in the general environment, and more specifically in technology would be the movies. Over the past several years one of Netflix’ main focuses has been on producing movies in-house, therefore allowing them to premiere them on their own schedule and giving them an advantage over cable television, movie theatres and putting them at the very top of the TV-industry (Morgan, 2019). The impact of the movie trend on Netflix is obvious, because Netflix had introduced a whole another level by offering their own produced movies, which are only available through their services. In addition to that, there are no advertisements, consumers can access them on their own schedule, and the movies are high-budgeted movies that have done quite well in the market (Morgan, 2019). With the movie industry being so massive nowadays, what a better way to win the consumers over than to offer them an ad-free content, that is also quality content only shown on Netflix. In order to continue monitoring these trends we need to turn to professional movie critics, as well as analytical reports on views and members, and with all of this collected data, Netflix would be able to get an insight on what it is that consumers enjoy the most, what it is that they need and want, and then use that information to their advantage. In order to stay in the very top of the TV industry Netflix has to continue monitoring the trends and accordingly find ways to incorporate this information into its competitive strategy.

References:

Dess, G., McNamara, G., Eisner, A., & Lee, S. H. (2021). Strategic Management: Creating Competitive Advantages (10th edition). McGraw-Hill Higher Education.

Morgan, B. (2019, June 26). What Is The Netflix Effect? Retrieved from https://www.forbes.com/sites/blakemorgan/2019/02/19/what-is-the-netflix-effect/#38b3f5b35640